STAND. COM. REP. NO.  966

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 1479

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1479, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE SUPPORT FOR SMALL BUSINESSES,"

begs leave to report as follows:

     The purpose of this bill is to achieve parity for part-time workers and sole proprietors without employees who seek group health insurance by providing part-time workers, self-employed workers, and sole proprietors without employees and who are not incorporated, with access to insurance policies with benefits comparable to full-time workers.  This measure also prohibits group health insurers from imposing certain eligibility requirements.

     The Department of Commerce and Consumer Affairs and Hawaii Association of REALTORS testified in support of this bill.  The Hawaii Association of Health Plans opposed this measure.  The Hawaii Medical Service Association and Kaiser Permanente provided comments.

     Your Committee has amended this bill by:

     (1)  Adding definitions of "qualifying event" and "self-employed individual" and restoring the original definitions of "employee" and "small employer";

     (2)  Removing the provisions that would have prohibited group health issuers from imposing certain eligibility requirements;

     (3)  Adding provisions that require group health insurers to offer small group health plans to certain self-employed individuals;

     (4)  Imposing enrollment periods;

     (5)  Removing the provisions pertaining to mandatory coverage for self-employed individuals;

     (6)  Changing the effective date to September 1, 2007, with a repeal date of September 30, 2010; and

     (7)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1479, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1479, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair